Market Wrap: Stocks, Bonds, Commodities
Wall Street ended higher in a late-summer, light volume rally on Tuesday as the FDA’s full approval of a COVID-19 vaccine on Monday and the absence of negative catalysts kept risk appetite alive ahead of the much-anticipated Jackson Hole Symposium.
The Dow Jones Industrial Average rose 30.55 points (0.09%) to 35,366.26, the S&P 500 gained 6.7 points (0.15%) to 4,486.23 and the Nasdaq Composite added 77.15 points (0.52%) to 15,019.80.
Asia-Pacific stocks mostly rose in early trade Wednesday, as optimism continued to drive U.S. stocks, with the S&P 500 and Nasdaq reaching record highs overnight.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.29% to 817.15 levels. Australian index rose 0.39% to 7,531.90. Japanese Nikkei traded flat to 27,724.80.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index advance 0.10% to 4,181.30, Germany’s DAX rose 0.05% to 15,909.50, and France’s CAC gained 0.18% to 6,675.52, and U.K.’s FTSE 100 up 0.16% to 7,137.25.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields lost 0.37% to 1.285.
Oil prices rose 3% on Tuesday, supported after Mexico suffered a large production outage due to a fire on an oil platform and also by full U.S. regulatory approval of vaccines for COVID-19.
Spot Brent crude oil fell 0.26% to $70.22 per barrel. US West Texas Intermediate crude slipped 0.24% to $65.92 a barrel.
The yellow metal traded lower 0.72% to 1795.50 dollars per ounce.
Market Wrap: Forex
The safe-haven dollar traded near a one-week low versus major peers on Wednesday as concerns eased that the highly contagious Delta coronavirus variant could derail a global economic recovery, lifting commodity-linked currencies like the Aussie.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which gained 0.16% to 93.052.
The Euro US Dollar (EUR/USD) is a widely traded pair that advanced fell today. This left the pairing trading around $1.17350.
The Japanese yen lost against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY gained 0.16% to 109.780 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.17% to 0.72450, and NZD/USD slipped 0.05% to 0.69420 level.
EUR/USD Intraday: Support at 1.17310
Our pivot point is at 1.17310
Preferable Price Action: Take long positions above pivot level with targets at 1.17640 & 1.17820 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.16980 & 1.16800.
Comment: Pair near its 55MA & 20MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Support at 1.37100
Our pivot point is at 1.37100
Preferable Price Action: Buy positions above pivot with targets at 1.37580 & 1.37890 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36620 & 1.36270.
Comment: Pair near its 55MA & 20MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Resistance at 109.820
Our pivot point is at 109.820
Preferable Price Action: Sell position below pivot with the target at 109.520 and 109.340 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.110 and 110.290.
Comment: Price above its 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Trend on the upside
Our pivot point is at 0.72190
Preferable Price Action: Buy Positions above pivot with targets at 0.72760 & 0.73050 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.71670 & 0.71360 as targets.
Comment: Pair near its 20MA & 55MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Strong trend on the upside
Our pivot point is at 66.83
Preferable Price Action: Above pivots buy Oil with 68.80 & 70.29 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.69 and 63.27 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Resistance at 1801.70
Our pivot point is 1801.70
Preferable Price Action: Further downside to 1789.80 & 1783.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1812.30 and 1818.30.
Comment: MACD in negative territory and price below its 55MA & 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: In a consolidation zone
Our pivot point is 35,242.00
Preferable Price Action: Take long positions above pivot with targets at 35,539.00 & 35,693.00.
Alternative Price Action: below 35,242.00 looks for further downside to 34,971.00 & 34,803.00.
Comment: Price above its 20MA and RSI at 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced